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Archive for the ‘business competition’ Category

Reinforce your knowledge about payday loan

28 Jun

By using this practical cognitive technique, human beings have learned about life and survived on their own even in new and unfamiliar situations. A primitive example of this knowledge transference is the lesson most of us learned at a very young age about fire. We were told not to touch it because it was hot. Fire hurts! Most of us heeded that advice. Furthermore, if we happened to get burned inadvertently, the accident did something very important for us. It reinforced our knowledge that fire is hot and it will burn and hurt if we touch it. Since we don’t enjoy pain, we created a mental map about fire and avoided touching it. Now, as adults, we make decisions about fire based on our past orientation.

The “Mental Map Matrix,” illustrates how we use mental maps. While the human decision-making process includes an incalculable number of variables, this simple model shows how we continue to create new mental maps and reinforce old ones. It starts when something happens to us or we experience a new event (box 1). The first thing we do is instantaneously scan our memory for any similar experiences (box 2). Generally at a subconscious level, we ask, “Have I had an experience like this?” (box 3). In most cases, especially as we get older and have more life experiences behind us, we’ll identify some experience that resembles the current situation. If we do, we then try to remember the outcome: “Was it successful for me?” (box 4). This is an internal value judgment. We make this judgment based on our psychology and personality at that moment in our life. Most likely we judge “success” by whether the outcome got us what we needed. If we judge the previous outcome to have been successful, we’ll duplicate the behavior (box 5) to match our mental map and will expect a similar outcome. The aftermath of the experience reinforces our mental map (box 6) as the “right” reaction to that experience.

 

Short term

28 Jun

What is a short term loan?

Short term loans are offered by different lenders, ranging from trusted payday loan lenders to even colleges. Short term loans are due within a set amount of time, usually less than a year, depending on the lending institution you used to receive the loan.

Some colleges offer short term loans to students. The borrower must be a student and must be able to show that the loan can be repaid in a certain amount of time. If a student is expected to receive student loans or other student aid, the college may lend a higher amount.

Short term loans are offered by brick and mortar stores around cities or via the internet. These are unsecured, high interest loans that are usually due with the deposit of the borrower’s next paycheck. For example, a payday advance company may offer a loan and charge $30 for each $100 borrowed.

Banks also offer short term loans. These loans can have a maturity date as early as 60 to 120 days from the date of inception of the loan. Bank short term loans can also mature up to one to three years after the inception of the loan. The terms depend on the bank and the amount of money borrowed.

Many banks may also require collateral, depending again, on the amount borrowed. The smaller the loan, the less likely the lender or bank is to ask for collateral. The application process is also a bit longer because the bank will check the borrower’s credit to be sure the borrower has the ability to pay the loan back. They may also look at a borrower’s personal credit score to determine whether to grant a short term loan. Banks may offer short term loans for a lower annual percentage rate than a payday loan service.

If you read the cautionary literature handed out by nonprofit debt management agencies and by consumer advocacy groups, short term loans in any form may seem terrifying. However, they can provide a lifeline for you if extraordinary circumstances put you in the position of needing cash fast.

 

Open yourself to future credit possibilities

24 Feb

What happens when you open yourself up to future possibilities? This is what the concept of future orientation decision making is all about. Here we explore the ability to recognize—even welcome—the potential, the unexpected, the new. Whether an organization is closed or open to new information is determined by whether it has a past or future orientation.With a past orientation, we communicate and make decisions on the basis of past information and reject or ignore new information. Traits of a past orientation include: Reliance on past history for decision making, Language focused on past events or behavior, Independent relationships, Strong need for control, Need to maintain the status quo, Low trust, Win-lose conflict resolution style.

Those with a past orientation operate in a closed paradigm—they view the world the way they want it to be. They’re unwilling to challenge their own assumptions and change their beliefs. They make decisions based on outdated mental maps. They are speaking and living in the past with old information.

 

The credit and economic risks

19 Dec

A synthetic CDO is an investment in which the underlying collateral is a portfolio of CDS. The issuer does not own the underlying assets but retains the credit and economic risks. The recent CDOs make use of “unfunded” senior tranches. The super senior investor will enter into a CDS with the SPV. The super senior is typically unfunded, matching the unfunded nature of CDS. The super senior tranche provides second-loss credit protection. As in cash CDOs, the rated note and equity pieces are generally funded. Synthetic deals can have a final maturity of 5–7 years.

Example: Collateral pool No of reference entities: 100 Notional amount of CDS: Euro 5 million Total size: Euro 500 million The example details a possible tranching of a 500 million portfolio into four tranches. Losses in the portfolio up to 5 percent (Euro 25 million of losses in total) would result in a complete write-down of the equity tranche. Further losses in the portfolio in excess of 5 percent and up to 9.5 percent (losses of Euro 47.5 million in total) would then result in a write-down of principal in the mezzanine tranche. If each credit had a 50 percent recovery rate, each default in the underlying portfolio would result in a loss of Euro 2.5 million. Therefore, it would take 10 defaults to write-down the equity tranche.

 

Building customer credit loyalty

13 Oct

One popular method of building repeat business is through customer loyalty schemes. Their inventiveness can be surprising, providing insights into the brand values of the company as well as the threat that they pose to competitors. Virgin Atlantic, for example, has an ingenious way of using such schemes: to reduce the time it takes to get new customers, it offers privileges to people involved in competitors’ loyalty schemes. For a while, Virgin offered a free companion ticket to any British Airways frequent flyer who had accumulated 10,000 miles. This had the added advantage of reinforcing perceptions of the Virgin brand as being dynamic and flexible, if somewhat bold and outrageous.

 
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